Montgomery County's "Bill 20-24, Public Campaign Financing-Amendments," would increase the maximum amount of funds a certified candidate may retain to pay post-election expenses, require periodic adjustments to permissible contribution limits and retention amounts based upon the Consumer Price Index, and make updates and technical corrections throughout the public campaign financing law.
Why It Matters
If enacted, this would encourage greater voter participation in Montgomery County elections. Additionally, it would increase the opportunities for more residents to run for office and reduce the influence of large contributions from businesses, political action groups, and other large organizations.
Key Facts
The County’s campaign finance system was designed to reduce the influence of large corporate donors and PACs, empowering small donors to have a more prominent voice in local elections.
In the 2022 election cycle, 32 candidates opted into the public financing program, a marked increase from previous elections where fewer candidates relied on public funds.
A report from Maryland PIRG found that in Montgomery County’s 2018 elections, small donors accounted for a significantly larger portion of the fundraising for candidates who participated in the program. The report found that for participants, 98% of the money raised was in small contributions, whereas, for non-participants, only 3% of the money raised was in small donations.
The annual inflation rate in the United States increased from 3.2 percent in 2011 to 8.3 percent in 2022, significantly impacting campaign costs.
Small donor public financing increases opportunities for candidates who historically have faced barriers in private wealth–based politics, such as women, people of color, members of the LGBTQ+ community, and low-income Americans.
A Pew Research Center survey found that 77% of Americans think there should be limits on how much money individuals and organizations can spend on political campaigns.
Current Policy
Under the existing public campaign financing law (Chapter 16 of the Montgomery County Code), candidates can only retain up to $5,000 in campaign funds after an election for expenses. Bill 20-24 doubles this limit and ties future adjustments to inflation, providing more flexibility for candidates to cover necessary expenses post-election.
Additionally, while current law already adjusts certain campaign finance limits based on inflation, this bill expands and formalizes how those adjustments are calculated, ensuring contribution limits are adjusted every four years using the CPI for the Washington-Arlington-Alexandria region.
Proposed Changes
Bill 20-24 proposes amendments to the current public campaign financing system in Montgomery County. The maximum amount of funds that a certified candidate may keep after an election for post-election expenses would be increased from $5,000 to $10,000, and starting in 2028, it will be subject to adjustments based on inflation. Bill 20-24, to keep campaign limits in line with economic realities, would introduce regular adjustments to contribution limits and retention amounts based on the Consumer Price Index (CPI), meaning that public funds disbursed and personal contributions would be adjusted to reflect inflation rates. Additionally, technical corrections would be made to the existing law to make the County’s public campaign financing law clearer to ensure consistency and accurate implementation.
Who is Affected?
Bill 20-24 will affect:
Certified candidates who can receive public matching funds for their campaign for either County Executive or County Council.
Potentially, voters as the changes may impact how candidates interact with them as the changes would urge them to engage with more small-dollar donors.
Timeline and important dates
If passed, the bill’s provisions will become effective as outlined in the County’s legislative procedures, but key dates include:
September 17: Bill introduction.
October 8: A public hearing on Bill 20-24 is scheduled.
July 1, 2028: The first inflation-based adjustments to public financing limits and retention amounts will take effect.
Enforcement
The Chief Administrative Officer (CAO) and the Board of Elections are responsible for enforcing public finance laws in the County. The CAO is responsible for calculating the inflation-based adjustments to public financing limits and ensuring they are published in advance. Violations of the law will be subject to civil penalties, including potential fines, with enforcement supported by the Board of Elections.
Next steps
This is an important step forward in ensuring the County’s elections remain fair, transparent, and accessible to all candidates, regardless of their financial backing. Stay tuned for updates, and mark your calendar for the October 8th public hearing if you wish to voice your opinions on this important bill.
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